The Federal Competition and Consumer Protection Commission (FCCPC) has announced the official commencement of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations (DEON Consumer Lending Regulation), 2025, which aims to impose a N100 million sanction on non-compliant Digital Lending operators in Nigeria.
This development, announced in a press release by the FCCPC on Wednesday, aims to address longstanding consumer complaints and related issues.
According to Ondaje Ijagwu, Director of Corporate Affairs, FCCPC, the rule is expected to tackle “exploitative practices, data privacy violations, abusive loan recovery tactics, harassment, and anti-competitive behaviour by certain digital lenders and their partners within Nigeria’s rapidly growing digital credit market.”
FCCPC Reacts
According to the statement, the Commission’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, announced the gazetting and commencement of the Regulations at his office in Abuja on Wednesday.
He stated, “For too long, Nigerians have endured harassment, data breaches, and unethical practices by unregulated digital lenders. These regulations draw a clear line that innovation is welcome, but not at the expense of the rights and dignity of consumers or the rule of law.”
- He highlighted that the regulations provide the legal tools to hold violators accountable and promote responsible digital finance, adding that no consumer should be harassed, defamed, or lured into unsustainable debt under the guise of digital lending.
- According to the FCCPC, the landmark Regulations, made pursuant to Sections 17, 18, and 163 of the Federal Competition and Consumer Protection Act (2018), primarily safeguard consumers by establishing a comprehensive framework.
- The Regulations, which came into effect on July 21, 2025, establish a robust legal framework to register, monitor, and sanction all forms of digital and non-traditional lending in Nigeria.
“Non-compliant operators face sanctions, which may include fines of up to N100 million or 1% of turnover, as well as potential disqualification of directors for up to five years,” the FCCPC warned.
- The FCCPC stressed that this development is a crucial step toward regulating Nigeria’s rapidly expanding digital lending sector.
- The Commission highlighted that the new rule is applicable to all unsecured consumer lending conducted through electronic, online, mobile, or other non-traditional means. It also sets out clear requirements for registration, transparency, data privacy, ethical recovery, fair interest rates, and responsible lending.
“Critically, the Regulations prohibit pre-authorised or automatic lending, compel clear and accessible loan terms, ban unethical marketing, and mandate local ownership of at least one service provider for airtime and data lending services.
“It also requires joint registration of all lender partnerships and prohibits monopolistic or dominance-based agreements without prior Commission approval,” the statement partly reads.
- The FCCPC urged all current and prospective providers of digital lending services, including Mobile Money Operators (MMOs), Digital Money Lenders (DMLs), and service partners, to visit the Commission’s website for application forms, guidelines, and compliance requirements.
- Consumers were also advised to report unlawful or unregistered lenders, unfair interest rates, or privacy violations to the Commission through its complaint portal: lenderstaskforce@fccpc.gov.ng.
Backstory
Nairametrics previously reported that digital lenders in Nigeria are currently worried about recent moves by the FCCPC to regulate their interest rates.
Following complaints by Nigerians that the interest rates of many digital lenders, popularly known as loan apps, are too high, the Commission, through its Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, said it will now monitor the rates.
A step in the right direction. Hoping the commission will pull through on this mandate to sanitize the system.